US Stocks Crater Under Iran, Oil Pressure

Markets cratered on Friday, with the S&P 500 losing 1.7% and the Nasdaq 100 entering a correction with a loss of more than 10% from its last record. As the conflict in the Middle East continues unabated and the White House sends mixed signals about the status of the war, investors have grown increasingly concerned that higher oil prices will lead to faster inflation and cripple the global economy.

Brent crude oil jumped to $112 a barrel as Iran continued to turn away tankers from the Strait of Hormuz. Higher fuel prices are stoking inflation worries — economists raised US inflation estimates to 3% this year — and undercutting the case for the Federal Reserve to lower interest rates anytime soon. That has helped push up Treasury yields this week.